Day: January 3, 2018

Woodpecker Ltd provided a list of its assets and liabilities as at 31 December 2016 as follows.

• Long-Term Assets £300k
• Inventory £85k
• Accounts Receivables £40k
• Bank Account £10k
• Cash £5K
• Accounts Payable £65k
• Long-term Bank Loan £700k
• Reserves £125k
• Share Capital £100kRevenue £3,800k
• Cost-of-Sales £2,400k
• Net Profit Margin £300k
• Purchases £1,200k

 

What is Woodpecker’s Expenses in relation to revenue Percentage?

Select ONE answer:

1. 34.86
2. 36.84
3. 7.89
4. 58.33
5. 28.95

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 5 – £3,800k – £2,400k = £1,400k – £300k = £1,100k / £3,800k * 100 = 28.95%

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